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                        M. Z. HAMM
 
 LESLIE SAWHNY
 PROGRAMME
 OF
 TRAINING
 FOR DEMOCRACY
 Revised Edition
 
 Bangalore-560034
 
 'ndla
 
 LIBERALISM
 By
 M. R. Masani
 
 Liberalism is something about which not much is
 known or written or discussed in this country. It is
 nonetheless a worldwide system of thought and a way
 of life which, I think it would be fair to say, domi
 nates the greater part of the civilised world and,
 therefore, it should be of some interest to us.
 Liberalism has been defined by Hobhouse, the
 great historian and political scientist, in the following
 way : “Liberalism is a belief that society can safely
 be founded on the self-directing power of personality,
 that it is only on this foundation that a true commu
 nity can be built. Liberty then becomes not so much
 a right of the individual as a necessity of society.”
 Prof. Parkinson, the well known author of Parkinson’s
 Law, says : “The word liberal means generous or openhanded. But generous with what? With freedom and
 political responsibility.”
 The Individual
 
 The word ‘Liberalism’ derives from liberty. In
 other words, the individual is in the centre of the
 picture. Society is there to serve the individual and
 not the other way around as certain other systems of
 thought like communism or socialism try to make
 out.
 The essential elements of Liberalism are all per
 vasive and touch every aspect of life. In so far as
 matters of the spirit are concerned, tolerance, parti-
 
 cularly tolerance of dissent, is basic. Whether an
 issue is religious, communal, regional, national or
 pertains to small groupings like caste and linguistic
 groups, tolerance of the other point of view and
 willingness to argue about it are of the essence of
 Liberalism.
 This is in striking contrast to the Soviet or
 Communist attitude to dissent. The Soviet dictator
 ship has now stooped so low as to declare that any
 one who dissents from their way of life must be mad.
 The book by Zhores & Roy Medvadev, A Question
 of Madness, tells the sad story of how anyone who
 wishes to improve things in Russia is treated as suffer
 ing from “paranoid delusions of reforming society.”
 This would be enough to make Karl Marx, with
 even his limited stock of tolerance, turn in his grave.
 In so far as religion is concerned, Liberalism is
 not anti-religious but it is non-denominational and
 perhaps sceptical. A good Liberal does not attack
 all religions equally as a ‘secularist’ would do. A good
 Liberal would tolerate and respect all religions
 equally. In that sense, Gandhiji’s attitude to religion
 was much more liberal than that of those who call
 themselves ‘secular’ and who look at all religions
 with an equally malevolent eye. The Indian Con
 stitution is, in that sense, highly liberal and extends
 equal respect to all religions and religious
 institutions.
 Pragmatism
 
 Another basic characteristic of Liberalism is its
 pragmatic approach to whatever problem there may
 happen to be at a particular time. The Liberal
 does not approach any problem with a dogmatic or
 preconceived attitude. He is open-minded on all
 issues. Thus, for instance, in so far as democratic
 socialism is concerned, the Liberal would be quite
 prepared to accept as large a dose of State control
 2
 
 GSR loo
 
 as the circumstances of a particular country, case
 and time may warrant. While holding the view that
 competition, consumer preference and the laws of
 the market should predominate, the Liberal is flexible
 about the exact nature of the mixed economy which
 would be desirable in a particular context.
 As a result of this, the line between the Liberal
 and the Social Democrat has got blurred and no
 longer really exists. In England, this phenomenon
 was given the name of ‘Butskellism,’ a combination
 of what were understood to be the policies of R. A.
 Butler of the Conservative Party and Hugh Gaitskel
 of the Labour Party. In Germany, this fusion of
 Liberalism and Social Democracy resulted in the
 Godesberg Programme of the German Social De
 mocratic Party led by Willy Brandt which, for all
 practical purposes, accepted the framework of libe
 ralism. I had, on one occasion, published in parallel
 columns the corresponding clauses of the German
 Social Democratic Programme of November 1959
 and the Swatantra Party’s Programme of August
 1959. It was amazing how one appeared to be a
 translation or paraphrase of the other. Here, for
 instance, are two clauses dealing with the structure of
 Industry and the limits of governmental intervention
 and planning :—
 Swatantra Party
 
 “The Party believes that, in the field of produc
 tion, the free choice of the producer and the con
 sumer must be given basic place and importance.
 In industry, the Party believes in the incentives
 for higher production and expansion inherent in
 competitive enterprise, with adequate safeguards
 for the protection of labour and against unreason
 able profits, prices and dividends, where there is
 no competition or where competition does not
 secure the necessary corrective.”
 3
 
 German SPD
 
 “The free choice of consumer goods and services,
 free choice of a place to work, free initiative for
 employers are decisive foundations and free com
 petition an important element of a free economic
 policy... .Totalitarian control of the economy
 destroys freedom. The Social Democratic Party
 therefore favours a free market, wherever free
 competition really exists. Where markets come
 under the domination of individuals or groups,
 however, manifold measures are necessary to
 preserve the freedom of the economy. As much
 competition as possible, as much planning as
 necessary.”
 Pluralism
 
 The Liberal is of necessity a pluralist, that is, he
 does not accept the predominance of any one line of
 thought or dogma or even one class of society. In
 the Liberal’s mansion there are many chambers and
 there is room for everything. The Liberal, therefore,
 believes in a pluralistic society where there are checks
 and balances between different organs of govern
 ment such as the executive, the legislature and the
 judiciary. In a Federal form of government, there
 have also to be checks and balances between the
 federal government on the one side and the state
 government on the other. In the case of countries
 with multi-religions, multi-ethnic and multi-lingual
 groups, such as India, the Liberal believes in the pro
 tection of the rights of Minorities. In the conflict
 between the individual and the State, there should
 be Fundamental Rights for the citizen with an appeal
 to the Courts of Law. There should be a separation
 of political and economic power. In other words,
 the Liberal believes in limited government. ‘Render
 unto Caesar the things that are Caesar’s, and unto
 4
 
 God the things that are God’s’. God, in this case,
 is the conscience of the individual.
 The Liberal is never a determinist. He never says
 that such and such a thing is bound to happen, as
 does the Marxist. All he can say is that, on the basis
 of a rational analysis, certain things are likely to
 result if certain other things happen.
 Justice
 
 The Liberal stands for justice for the underdog,
 whoever he may be. Thus, he is for equality of wo
 men with men, though he may not be for Women’s
 Lib with all its aberrations. The Liberal stands up
 for the right of children and decent treatment for
 them. So too, the Liberal pleads for sympathy for
 the criminal and the odd man out.
 Modernism
 
 The Liberal is a modernist. He is an advocate of
 change. He welcomes and cheerfully accepts modern
 technology with all its implications. He stresses the
 role of managerial skills in industry and business and
 other walks of life. He accepts the importance of
 science in modern society. It is not an accident that
 technology only thrives in freedom and, where freedom
 is denied to the scientist and technologist, t’here is
 stagnation.
 In the conflict between modernism on the one side
 and obscurantism, whether that of the nation, the
 caste or religion on the other, the Liberal is on the
 side of modernism and change. The Liberal is not
 against tradition. On the contrary, the Liberal res
 pects what is good in the tradition of people and seeks
 to build and change on the basis of that tradition.
 In that sense, the Liberal is not an incendiary or dis
 rupter but a constructive element of change.
 5
 
 “Bread or Freedom ?”
 
 The Liberal rejects the false antithesis between
 freedom and bread which the communists and the
 fascists always pose. They ask : “Do you want
 bread or freedom?” As if we have to choose the
 one or the other ! As if, when you have freedom,
 you don’t have bread or, to have bread, you must
 give up your freedom ! Now this is a huge hoax.
 Because actually you don’t get bread except through
 freedom. There is no known instance in human
 history where a country of slaves got bread. Now,
 by bread, we don’t mean only bread. You get that
 even in Moscow. By bread we mean the good things
 of life—the material values of life, consumer goods,
 as we call them. There is no known example in hu
 man history till this day where, by denying people
 freedom, you give them a prosperous life. On the
 contrary, the Affluent Society comes only where there
 is maximum freedom.
 Which are the countries where you have the most
 bread, to put it like that, that is the best time ? Ob
 viously, the U.S.A, leads, Canada, Australia and
 New Zealand come very close, then come the Scandi
 navian countries of Sweden, Norway, Denmark, then
 comes Switzerland, then you get West Germany,
 France, Italy, Japan and so on. Right down at the
 bottom along with us, you get the Soviet Union, ahead
 of us, and China below us. In other words, when
 you do deny people freedom, you take away their
 bread also. That is natural. Why should slaves be
 well fed ? Why should any government feed its
 slaves well ? The Egyptians, who used slave labour
 to build the Pyramids, did not treat them well. They
 flogged them until they built the pyramids and died
 in the process. It is only the free man who has a
 right to ask for bread. Because he has the right, he
 has got the strength, he has the vote, whatever you
 like to call it.
 6
 
 A Free Economy
 
 A free economy therefore means that government
 has to play a rather limited and restricted part. Social
 control must be limited to a minimum. The whole
 idea of control is to interfere with people when some
 thing is going wrong. You stop a man from stealing,
 you stop a man from hitting somebody else, you stop
 a man from cheating somebody else, you stop an
 employer from cheating his worker—that is fair.
 But you don’t stop a man from doing something which
 he should be doing. So controls are only police
 measures to stop somebody from doing something
 he should not. The Government should not be like
 the mother who told the nanny : “Mary, go and
 see what Johnny is doing and tell him not to”! Johnny
 should only be stopped when he is really doing some
 thing which he shouldn’t.
 The second characteristic of a free society is that
 “the consumer is king.” Everything must be done
 to serve the needs of the consumer, not of the indus
 trialist, not of the businessman, not of the factory
 worker, but of the man who consumes, because he is
 the ordinary citizen. We all consume. There is
 not a single human being in India today who doesn’t
 consume. He would be dead if he didn’t. We con
 sume, you consume, our children consume. Now
 what does “the consumer is king” mean ? It means
 that the consumer must determine the pattern of
 production. The consumer must tell the industrialist
 what to produce and what not to produce. The
 consumer can do this by his purchasing power, by
 the little money in his pocket. The industrialist or
 businessman only produces what he thinks will make
 a profit. In other words, if there is a demand for a
 commodity, you produce it. If there is no demand,
 you are a fool if you produce it because nobody will
 buy it and you will lose your capital. In this way,
 the smallest consumer can determine the pattern of
 7
 
 production in a free country.
 Some of you, no doubt, go to the races. I go once
 a year or two when I am dragged there. There is a
 thing called the Tote, on which all the demands of
 the consumers, that is the buyers of tickets, are totalled
 up and you can say 25 people are backing Horse ‘A’,
 75 people are backing Horse ‘B’, 275 people backing
 Horse ‘C’ as their favourite. The others are out
 siders. The dividend is paid according to the law
 of supply and demand. Now, exactly the same thing
 happens in our bazaars. Every time we go shopping,
 we cast a vote. As you buy a ticket to back a horse,
 so you go to a shop and say “I want Hamam” or “I
 want Godrej,” or whatever it is. You cast a vote
 for that particular brand of soap against another
 brand, just as you vote for me and not for the Congress
 Party or vote for the Congress Party and not for me,
 or just as you back one horse and not another. Now,
 all these preferences for soaps and perfumes, for bread
 and biscuits and cakes, and whatever else you like,
 are totalled up on the economic tote and, by looking
 at the economic tote, the business community and the
 industrialists decide what is popular, what is favoured.
 They shift their production according to the demand.
 Let us take an example of the Monsoon. As you
 know, the shops before the Monsoon are filled with
 commodities pertaining to the Monsoon, namely,
 raincoats and umbrellas. Now, some people take
 umbrellas, some people take raincoats. The pessi
 mists take both ! How does the manufacturer know
 how many umbrellas and how many raincoats will
 be needed ? He watches the demand and he learns
 from one monsoon what to produce for the next.
 Let us imagine that this year, for some reason—after
 all human beings have their own whims—the demand
 for raincoats went up tremendously, but umbrellas
 got left. It is fashionable to wear a raincoat and not
 an umbrella. It is considered old-fashioned and
 8
 
 dowdy to have an umbrella. Now what happens ?
 The umbrella dealers say : “Oh God, we have had
 it. Next year the same thing will happen, perhaps
 it will get worse.” They shift. They stop making
 so many umbrellas and turn to making more raincoats,
 or vice versa. You and I, buying a raincoat or an
 umbrella, have shifted the pattern of production in
 India. The biggest industrialist has to kow-tow to
 our needs. He needs us.
 This is what “the consumer being king” means.
 It has led to the highest prosperity known in history,
 the highest standard of life and also of equality of
 opportunity and status. This is a paradox. The
 countries where there is greatest equality'—there is
 nowhere perfect equality, nor can there be—but wher
 ever there is equality of opportunity and of status, it
 is in the capitalist countries. Which is the country
 in the world where the worker calls his boss by his
 first name ? The American worker never calls his
 boss Mr. so and so. He always says Tom or John.
 That is the United States. People in Europe are
 shocked at this kind of “vulgarity” or lack of good
 breeding because they are still class bound. So you
 get this strange phenomenon that you get not only
 the most prosperity but also the greatest measure of
 equality, which is supposed to belong to socialism,
 only in so called capitalist, or what I call liberal,
 countries.
 Socialism
 
 Now, let us turn to socialism, which is the denial
 of liberalism. Socialism is the reverse of liberalism.
 The Oxford Dictionary defines it as follows : “It is
 a principle that individual liberty should be com
 pletely subordinated to the interests of the community
 with the deduction that can be drawn from it, namely,
 the State monopoly of land and all capital.” That
 is, the human being is nothing. The collectivity or
 9
 
 community is everything. Man must be destroyed
 or used for the good of the community, which is to
 make Liberalism stand on its head.
 The Labour Party in Britain, which is a very mo
 derate Socialist Party and not a Communist Party,
 has in its programme included “the nationalisation
 of the instruments of production, distribution and
 exchange” as the objective. Now what does this
 mean ? The instruments of production are the land
 and all factories. All industry and all agriculture
 should belong to the Government. Distribution is
 trade. So all trades, all shops, should belong to the
 Government. And exchange is banking. So all
 banks should belong to the Government. And what
 remains for anyone else is nothing 1 Only the flat
 or the home where you live or the motor car. Now,
 the only countries, luckily for socialism, where this
 has been tried are the communist countries. The
 British Labour Party, although it is often in office,
 never tries to carry out its own objective, because it
 knows it would be horrible. It would be destroying
 liberty and Britain would become another communist
 state. So the British Labour people, the socialists,
 do not practise socialism. They only practise about
 15 per cent of it or less. I once asked Mr. Herbert
 Morrison, the well known British Labour leader who
 is now dead, how much of industry they could na
 tionalise in England without losing their freedom,
 without the House of Commons being abolished and
 a Communist dictatorship ruling England. He
 thought a little and said : “Well, in England I would
 risk about 15 per cent but, if I were you, I wouldn’t
 go so far.” Britain is a very strong democratic
 country. They have got the tradition of freedom
 from the days of Magna Carta. They have got the
 “non-conformist conscience” which came as a result
 of the Protestant Revolution standing up to the Pope.
 Well, as you know, in India we have no non-conformist
 10
 
 conscience. We are only too easily prepared to obey
 whoever is on top, whether it is the head of the family
 at home or the boss in an enterprise or shop or the
 Government of the day, whether it is British or Indian.
 Now, in India, we are getting well past 15 per cent
 Statism already.
 Communism
 
 What is the result in the Communist countries ?
 Let us take the Soviet Union as an example. Colin
 Clark, who is one of the world’s leading economists
 and who has written many books on these subjects,
 has shown statistically that the rise in the standard
 of life in the Soviet Union since the Revolution of
 1919 till today has been about the slowest and the
 lowest in the world. There is no country where the
 rise in the standard of life has not been faster. That
 goes all the way from America to Japan and all the
 countries.
 Even today in Moscow and Russia,
 there is very poor housing. Two or three families
 have to share a room, exactly like our workers
 do, where two sets of parents and children will share
 a room in a chawl. This is common practice in Rus
 sian cities even today. A man is considered lucky
 if he can get a flat for himself and his family and
 that measure of privacy which we all enjoy. Good
 clothing is very short, shoes are even scarcer. Every
 Russian diplomat or engineer in India, when he goes
 back, takes back several suits and several pairs of
 shoes, not to oblige his friends but to sell them at a
 profit. He makes a huge profit out of this private
 trade or blackmarketing.
 Agriculture has been the biggest failure in all
 Communist countries, because the peasant is very
 conservative and loves his land.
 Even if it is four
 acres, he loves it just as a mother loves her baby,
 however small it is. Mr. Nehru once said to me in
 Parliament : “Why should the peasant love his land?
 
 He has only got a miserable four acres”. I said to
 him : “Think of the mother.
 Does she love her
 child less because the baby is small and not big or
 thin and not fat?” The peasant in India loves his
 land even if it is half an acre. He will fight for it he
 will die for it, He sometimes stabs his own brother
 over a dispute as to dividing that land which the
 father has left them.
 So the peasants in Russia have simply refused to
 co-operate. Stalin killed three million peasants be
 cause they refused to hand over their land and their
 cattle. The peasants slaughtered their cattle and
 Stalin slaughtered the peasants. It still hasn’t im
 proved anything. The yield per acre of land in the
 Soviet Union is among the lowest in the world. With
 their tractors and mechanisation, they still can’t get
 as much out of an acre as most other countries in the
 world.
 The highest crops in the world are in Japan and
 in Taiwan (the Republic of China), both very small
 countries where the farms are small. In Japan and
 Taiwan, there is a ceiling of seven acres per head.
 No farmer is allowed to keep more than that. Our
 Indian average is about four to five acres. Our ceiling
 is 30 acres. So they have gone further in dividing
 farms into small lots, but they produce from each
 acre of land more rice than any country in the world.
 Taiwan comes first, Japan comes second, producing
 several times what the Soviet Union produces from
 its collective farms. The only progress the Communist
 countries have made is in armaments and the produc
 tion of steel. Steel—because they want steel for
 tanks and aeroplanes and guns. Militarist Com
 munist regimes concentrate on steel so they can occupy
 small countries like Tibet and Czechoslovakia. That
 is the only index by which the Soviet Union has made
 phenomenal progress, building up a big steel industry
 which it uses mostly for creating armaments.
 12
 
 The Russian people are very bitter about it. They
 are not very much behind the Czechs in their desire
 for freedom, as we shall see in the coming years.
 When Gagarin, the first Soviet spaceman, went into
 outer space and came back, the Russians, who have
 a sense of humour, joked about it because they could
 not do anything else about it. In all dictatorships,
 people joke. They joked about Hitler, they joked
 about Stalin, they joke about Kosygin. So the Rus
 sians made up a story about Gagarin. The story is
 that a foreign correspondent wanted to interview
 Gagarin about his space experience. He went to
 Gagarin’s country house because in Russia every
 rich man or member of the ruling class has a big
 country house and a motor car of his own. He went
 to the country house of Gagarin, who is a kind of
 capitalist in Russia, to interview him. Having mo
 tored several miles, he knocked on the door and a
 little girl came out. He said : “Can I speak to
 daddy ?” The girl said : “No, Daddy has gone
 out to outer space.” He said : “Oh dear what
 shall I do ? How long will Daddy be away ?” The
 girl answered : “May be he will be back in 4 or 5
 hours from outer space.” The journalist thought it
 was worth waiting 4 or 5 hours having come into
 the country. He said : “All right, I will speak to
 mummy meanwhile.” The girl said : “Oh, but she
 has gone out too.” The journalist asked : “Where
 has she gone ?.” The girl answered : “She has
 gone round the corner to the baker’s to stand in the
 queue for bread.” “Thats all right” said the re
 porter : “I will wait for her. How long will she
 take ?” The girl said : “That will take twice as
 long—about 8 hours !” Now in this simple story
 that came out of Moscow the Russian people expressed
 their bitterness that while millions of roubles were
 spent on sending Gagarin into space they have just
 13
 
 not enough to eat and have to queue up in long
 queues to get a loaf of bread.
 There are more inequalities in the Soviet Union
 than in Liberal countries. The American technician,
 the highest skilled, gets two and a half times the wage
 of the American “coolie”, who does the hard manual
 work. This is the range of inequality between the
 “coolie”, as we call him, and the most skilled techni
 cian or mechanic. In India, the inequality is probably
 about 1 to 25,—ten times the inequality in the U.S.
 In Jamshedpur it was about 20 to 1 when I was in
 Tatas, over ten years ago. Mr. J. R. D. Tata was
 trying very hard to bring it down to 16 to 1, being a
 very good progressive in his own way. I don’t know
 if he succeeded. Now, in the Soviet Union, it can
 be 40 or 50 to 1. This gives you an idea of how far
 from creating equality this kind of system creates
 inequality. And there is a good reason for it. In
 the Soviet Union the people with millions of roubles
 of income every year pay only 13 per cent as income
 tax. It is flat. A clerk pays 13 per cent and the
 millionaire pays 13 per cent ! This is called Socialism
 in the Soviet Union but not in India. Here they
 would call it reactionary.
 You might want to know about the Estate Duty.
 There are Russians who leave millions of roubles
 to their children. You will be interested to know
 they do not pay a single rouble of Estate Duty or
 Inheritance Duty ! There is no such thing. Now
 why does this happen ? This happens because poli
 tical power is being misused by the bosses of the Com
 munist Party, the rulers, to feather their own nests.
 That is human nature, and communists are no different
 from anyone else. They like to line their pockets
 also with the good things of life and money. So what
 has happened is that the Commisars are looting the
 people as the Tsar used to loot the people. All ruling
 classes are apt to pocket more than their fair share
 14
 
 of the dividend, and in Russia the ruling class is the
 Communist Party. There is no voting, there are no
 elections and the Communist Party dictates. So na
 turally political power is used by them to have a good
 time.
 This has been spelt out by a Communist, Milovan
 Djilas, former Vice-President of Yugoslavia, who
 has written a little book called The New Class. This
 book was published and he was given ten years’ rigo
 rous imprisonment by Tito to punish him for telling
 the truth about Communism. He was later released.
 Djilas explains how The New Class talk social
 ism and loot the people with a good conscience.
 Now in India also it is possible to say that after 20
 years of so called Socialism the same things are hap
 pening that have happened in Russia. Indian agricul
 ture is bankrupt. As you know, but for a good Mon
 soon, lots of people would be starving. All industries
 are stagnant. The capital market is dead. Almost all
 State enterprises are making huge losses. Hindustan
 Steel, which is financed by your money—tax payer’s
 money—has lost crores of capital. The average
 return on your capital, according to our Finance
 Minister when he last gave the figure for a selected
 range of Government enterprises, was 0.8 per cent.
 That is on money invested, you don’t even get one
 Rupee back on a hundred ! Now nobody else does
 business on this basis. They would be bankrupt and
 insolvent long ago. Normally, people expect 12 per
 cent return on capital. That they consider to be a
 reasonable profit. Many make more. But the
 Government of India gives the taxpayer in India less
 than 1 per cent on his capital in those industries that
 make a profit at all. The result is that we too have
 now practically come to the end of our tether. If we
 go on like this, we shall not only be bankrupt, there
 will be chaos in India in the next few years.
 15
 
 Lesson Learnt
 
 Now there are ardent Socialists who wouldn’t have
 believed this to be possible five or ten years ago but
 have now learnt the lesson. I will cite two of them.
 There is Mr. Lee Kwan Yew, the very intelligent
 Prime Minister of Singapore, who is a Socialist. He
 came to Bombay to meet Indian Socialists some years
 ago and he asked a question of them. He said : “It
 is pertinent to ask how is it that in Asia, countries
 like Japan, Hongkong, Formosa, Thailand and Ma
 laysia, which are bustling free enterprise economies,
 have achieved success, while countries professing
 Socialism have failed to produce satisfactory results ?”
 Another convert is Prof. Kenneth Galbraith, who was
 American Ambassador in Delhi and who was then an
 ardent socialist and planner in Mr. Nehru’s time.
 Last year, he wrote a book called The New Industrial
 State. This is what he writes in this book :
 
 “In India and Ceylon, and also in some of the new
 African countries, public enterprises have not as
 in Britain been accorded autonomy. Here the demo
 cratic socialist prerogative has in effect been fully
 asserted. India, in particular, as a legacy of co
 lonial administration, has an illusion of official
 omniscience which extends to highly technical
 decisions .... The effect in these countries of this
 denial of autonomy has been exceeding inefficiency
 in operations by the public firms .... In India and
 Ceylon, nearly all public owned corporations ope
 rate at a loss. The situation is similar in other
 new countries .... One result is that a large num
 ber of socialists have come to feel that public cor
 porations are by their nature, in the words of a
 Minister in the Wilson Government, ‘remote, irres
 ponsible bodies, immune from public scrutiny or
 democratic control’.”
 16
 
 The reason why this should be so is very simple.
 The body politic is like our own bodies. It consists
 of organs developed by society over the last few thou
 sand years since we were primitive apes or beasts.
 Now, as the human society develops, it throws up
 institutions. The Joint Stock Company has been
 thrown up in the last two hundred years to run busi
 ness. The Government or State has been thrown
 up to rule, to maintain order. Our bodies are like
 that. We smell through our nose, we eat through
 our mouth, we hear through the ears, we breathe
 through our lungs, we digest in the stomach and so
 on. Now what would happen if we tried to distort
 our organs and asked them to do something different
 from what they were meant to do ? Supposing we
 tried to breathe with our stomach and digest with our
 lungs or hear through the nose and smell with the
 ear ? What would happen ? It just wouldn’t work.
 That is exactly what happens when we try to misuse
 an organ of society. Governments were thrown up
 by society and civilization to protect the country
 from attack, to stop one person from attacking an
 other, to see that justice is done. In other words,
 Governments are there to keep law and order, do
 justice, protect people, protect the country from attack.
 That is where the basic functions of Governments
 stop. When Government tries to run a factory and
 to produce either penicillin or steel or whatever it is,
 it makes a flop because Governments are not made
 to make profits or to produce goods. Governments
 are not made to produce anything. Governments
 are meant to consume things, to keep order and give
 you a chance to produce. So state socialism and
 communism are a perversion of the laws of social
 growth. Therefore they are bound to fail. The con
 clusion to which one is driven then is that we have got
 to turn to Liberalism from this barren path.
 17
 
 World Liberal Movement
 
 There are liberal parties in most countries of the
 world. These parties have come together in an inter
 national institution called the Liberal International
 to which I happen to belong. It was established in
 Oxford in April 1947. Last September, 1967,1 attend
 ed the 20th Anniversary of the Congress also in Ox
 ford at St. Catherine’s College. At that time a Mani
 festo was adopted. Unfortunately, most of the parties
 affiliated to the Liberal International are in Europe,
 because Liberalism is very weak in the under-deve
 loped countries of the world. The only parties that
 are affiliated from Asia are from Israel, which is a
 progressive and liberal country. Even the Japanese
 Liberals, who are very powerful and have been in
 Government since 1947 or 1948 when MacArthur left,
 have not affiliated yet and in our own country, Liberal
 parties like my own are very small and very shaky.
 The Liberal International has however a group
 existing in this country which tries to spread the ideas
 of liberalism. It ran a School for Freedom in Delhi
 in December 1965. In December 1967 we had a
 Seminar in Poona attended by young people from
 India, Ceylon and Nepal and in October 1968 we
 had a rather more advanced Seminar on “Democracy
 and Development” in Coonoor where ten Indians,
 ten other Asians and ten Europeans exchanged ideas
 on this important subject.
 The Old Liberalism
 
 So Liberalism is making a beginning in India. But
 this is not the first time that Liberalism has come to
 India. It came in the 19th Century also. There
 was the old liberalism in India. Its leaders were
 Dadabhai Naoroji, Ranade, Gokhale, Ram Mohan
 Roy, Surendra Nath Banerjee, whose names you
 know. I saw many of them when I was a boy or as
 a student, attending the lectures of Srinivasa Sastri.
 18
 
 I remember as a boy playing round the feet of Dadabhai Naoroji at Versova where he was a neighbour
 of ours. I have seen Dinshaw Vachha, I saw Phirozshah Mehta, I knew Sapru and Jayakar. They have
 all gone and the old liberalism has gone also. It
 was killed by Mahatma Gandhi. When Gandhiji
 came on the scene as a dynamic nationalist following
 Tilak and Lajpatrai, he had no use for the old libe
 ralism, because the old liberals were extremely mo
 derate in their opposition to British rule. They were
 for Indian self-government. As you know Dadabhai
 Naoroji coined the word Swaraj—“Swaraj is my
 birthright and I shall have it.” But the method of
 fighting was very temperate and very moderate. He
 joined Parliament as a Liberal Member. He argued
 for India, but he was a constitutionalist. Liberals
 are not people who go to the streets, wreck things,
 attack people, and so on. Even today they are not.
 So, being constitutional, they appeared to be terribly
 moderate. As a young man, I was extremely im
 patient with my father and liberals of that type for
 being so slow and gentle about the evil of foreign rule.
 Even today I am not against nationalism. I have
 been a very ardent nationalist in my time. But when
 we become free, we don’t need nationalism any more.
 It is like the measles. When you grow up, you don’t
 have children’s diseases like chickenpox and measles.
 Nationalism is a disease of foreign rule. When some
 body is sitting on your chest, you want independence
 very ardently. You can’t breathe without freedom
 and that is as it should be. But when you are free,
 you don’t have to go on talking about your nationalism.
 Mature, advanced countries are not very nationalistic.
 They don’t need it. Go to Switzerland. They are
 a very patriotic people, but they don’t talk about
 Switzerland being the most wonderful country in the
 world 1 They are wonderful, but they don’t talk
 about it. So, as we grow up, there is no need to be
 19
 
 juvenile about nationalism. Of course love of the
 country must be there. When the country is attacked,
 we must rush to its rescue. We must make sacrifices
 for it every day. But we don’t want to be chauvinists.
 We don’t have to hate foreigners. We don’t have to
 throw out missionaries. Nationalism, while a good
 thing, has had its day. We can afford to relax on
 nationalism.
 Socialism has turned out to be a flop. It has been
 a failure. More and more people are now turning
 against it and more and more will turn against it.
 Czechoslovakia is fighting for its right to discard it.
 Hungary tried in 1956 and was smashed by tanks.
 Indonesia has thrown out its socialist dictator Soekarno
 and is now trying another path.
 Socialism has failed to deliver the goods. It has
 produced neither equality nor a better life for the
 masses of the people. I have suggested to you why it
 had to be so. The aims of socialism are good. I am
 still a socialist in that sense. If you put it to me :
 “Do you believe in Lenin’s ‘free and equal society’?” I
 will say ‘Yes’. If freedom and equality are the objec
 tives of socialism, I am for it. But when I find that the
 weapon that I have used does not create freedom or
 equality but creates tyranny and slavery on one side
 and inequality and poverty on the other, then I would
 be a fool if I stuck to the weapon. I am not that
 conservative that I cling to an out-of-date blunder
 buss when the weapon has become obsolete. What I
 am trying to say is that the objectives of socialism are
 still valid, but the methods are lousy. The methods have
 failed. State Planning, nationalisation, collective farm
 ing. These are weapons that have been tried and failed
 and only a stupid man hangs on to a weapon when he
 knows it can’t-deliver the goods. We have to be true
 to the objective, not true to the method.
 This I learnt from Mahatma Gandhi with whom I
 used to argue as a young socialist. He kept on saying
 20
 
 that by doubtful methods, you can’t get a good endEnds and means are meshed, interlinked. The end does
 not justify the means. We have seen from experience
 that we cannot get the good result of a free and equal
 society by injustice, by regimentation, by oppression,
 by lies.
 The New Liberalism
 
 So the new Liberalism has come to India after the
 failure of socialism. It is a fusion of western Liberalism
 and Gandhi. When the Swatantra Party was formed
 and I was drafting its programme, that is how I put it
 in an article in Life magazine—that two streams of
 thought had gone into the making of this effort,
 Western liberalism as they understand it plus the
 teachings of Mahatma Gandhi.
 What are these teachings that we graft on to
 liberalism or fuse with liberalism ? First, that ends
 and means are interlinked: that if we want a decent
 society our methods must be decent. We cannot
 create a free and equal society by expropriation,
 liquidation, lying, as the Communists claim they
 can. Secondly, as Gandhiji used to say repeatedly,
 “that Government is best which governs the least.”
 Minimum Government. The essential thing is to leave
 the people free. Thirdly, Trusteeship, that those who
 have the good things of life, those who have wealth
 must use them for the good of the community. While
 we have a good time with what we have, we must not
 be devoid of a social conscience or a sense of social
 obligation. Gandhiji called it Trusteeship of the rich
 for the poor. He said: let every rich man use his wealth.
 Certainly, let him keep it. Nobody should take it away.
 But let him use it so that he can have a good con
 science that he is doing what he can for those around
 who are not so fortunate. Now Vinoba Bhave and
 Jayaprakash have given this concrete shape as Bhoodan,
 the gift of surplus land, Shramdan, the gift of labour,
 21
 
 when you build the road free without asking for pay
 ment, and Sampattidan, when you give a little of your
 wealth. I have been giving 10 % of my net income every
 year for the last 15 years or so to the Sarva Seva Sangh
 of Vinoba and Jayaprakash. Jayaprakash persuaded
 —e that my social obligation was to give a share of my
 income for providing the landless people with ploughs
 or bullocks or seeds on the land that they were given.
 Bhoodan is all very' well. But if you give a man with
 er::: any means a plot of land, what is he going to
 cnhivate it with ? He needs a plough, two bullocks
 and some seed and then of course he might do some
 thing. So to give these landless people a little sampatti or capital, they needed cash.
 Liberalism believes in freedom, it believes in demoI was reading an article on Czechoslovakia in
 sttme magazine. It mentioned the slogan that was put
 np scmswhere in Prague: “Democratisation must lead
 to democracy.” So too I would say liberalisation must
 lead to liberalism. In a Communist State, democratisatiaD or liberalisation only means that you give a little
 .more elbow room to breathe, to talk, to move about.
 it dces-c't mean freedom. Democratisation in Commast lead to democracy, otherwise it is only
 a half way house.
 
 .’<c-w democracy has its disadvantages. I am not
 v-vi. about democracy. I realise its limitations,
 it* deficiencies. I am acutely aware of
 ’-wm e-en in my own Party. Winston Churchill was
 a great democrat. He was asked a question about
 democracy towards the end of his life. He had tasted
 co r true
 and the bitterness of democracy. He
 .'ac beer. f.a pohtseal exile for many years before World
 ’•t'
 He -a', brought in during World War II, and
 det
 ?-A 'wir. on the scrap heap when World
 '• >' H -at over. This is how democracy works. It is
 at ■-%. 7/e in this country don’t place our great
 rot-. or. the scrap heap and that is why we are going
 22
 
 down. After giving a little thought, Churchill said :
 “Of all the known systems of government, democracy
 is undoubtedly the worst—except for all the others!”
 There is a great Liberal in Asia, Carlos Romulo.
 He used to be the President of the United Nations
 General Assembly for some years as the representative
 of the Philippines in the U.N. He was heckled by
 some Communist students in the University of which
 he was President who asked him for a declaration of
 policy. They asked: “Mr. President, are you going left
 or right?” Romulo answered: “I am going forward”.
 That is the essence of Liberalism. Neither left nor
 right, but right ahead.
 
 23
 
 e<!‘,'on °f ^ie Text of a Speech delivered by Mr. M. Ral “ training course organised by the Leslie Sawhny
 Programme of Training for Democracy.
 
 Re. One
 
 Programme by. Alyind A' Deshpande for the Leslie Sawluty
 Street, Ballard p,. ,n’nS for Democracy, Orient House, Manga!
 ExanUner'^f5^. Bombay 1 a«d Panted by F. Wicsinger at the
 css, Dalal Street, Bombay 1.
 
 
Position: 432 (12 views)
